HelloFresh to acquire US meal delivery service provider Factor75
HelloFresh acquisition of Factor75 : German meal kit company HelloFresh said that its US subsidiaries have signed a deal worth up to $277 million to acquire meal delivery service provider Factor75 (Factor).
Based in Batavia, Illinois, Factor75 provides fully-prepared, fresh meals that are claimed to combine health, convenience, and restaurant-quality taste. The ready-to-eat meal
The company has a rotating menu of breakfast, lunch and dinner options, which feature Keto, Paleo, vegetarian, low-carb, plant-based and high protein meals that can be warmed up in the microwave or oven and are ready to consume in minutes.
Factor75 will be joining HelloFresh’s US portfolio of HelloFresh, EveryPlate, and Green Chef.
Uwe Voss – CEO of HelloFresh US, commenting on HelloFresh acquisition of Factor75, said: “Direct-to-consumer ready-to-eat meals are a nascent food vertical that we believe has the potential to grow into a multi-billion dollar category over time. With Factor, HelloFresh, EveryPlate and Green Chef, we have four high-growth food brands in our Group, all benefiting from our strong growth engine, technology and supply chain infrastructure.”
The acquisition gives HelloFresh its first office in the Chicago metropolitan area apart from four production and fulfillment facilities. HelloFresh said that a new facility will be opened in the near future for providing annual capacity to deliver more than $500 million worth of prepared meals.
Factor75’s full year revenue for 2020 is estimated to reach nearly $100 million.
Terms of HelloFresh acquisition of Factor75
As per the terms of the deal, Factor75 will be paid $177 million upon the closing of the deal followed by an amount of up to $100 million based on performance-based earn-out and ongoing management incentives.
Commenting on HelloFresh acquisition of Factor75, Mike Apostal – CEO of Factor75, said: “Since our founding, Factor has been at the intersection of taste, health, and convenience, providing simple, clean eating that not only tastes great but fuels consumers’ active and busy lifestyles.
“By joining HelloFresh, the market leader in meal kits in the US, Factor will leverage new resources and category expertise to accelerate our growth, enhance our brand positioning and further amplify our mission.”
The completion of the deal is subject to preceding customary conditions such as expiry of the waiting period under the US Hart-Scott-Rodino Antitrust Improvements Act, approval by the majority of Factor75’s shareholders. It is presently expected to be wrapped up within the next months.